Capstone Reports 44% Increase in Copper Contained in Undeveloped M&I Mineral Resources at Minto

Tuesday, Aug 31, 2010

Capstone Mining Corp. (CS: TSX) today announced the results of National Instrument 43-101 compliant mineral resource estimates for four separate undeveloped deposits at its high grade Minto copper-gold mine in Yukon, Canada. New mineral resource estimates have been completed for all deposits not currently being mined, including the Area 2/118 deposit, the Ridgetop deposit, the Minto North deposit and the Minto East deposit. These are interim results as the estimates only include drilling conducted to the end of April 2010. Exploration continues with three drill rigs and additional resource updates are anticipated in time for inclusion into an updated pre-feasibility study currently underway. The updated mineral resource estimates reported herein are for undeveloped deposits only and exclude the Main deposit, which is currently being mined and processed.

The net result of successful 2009-2010 exploration programs, up to the end of April 2010, using a copper cut-off grade of 0.5% copper, is that the estimated measured and indicated mineral resource saw an increase of 44% in contained copper, 35% in contained gold and 42% in contained silver over the last consolidated mineral resource estimate that provided the basis of the Phase IV PFS released on December 15, 2009. The updated mineral resource estimate for all undeveloped deposits at the Minto Mine are tabulated below and are discussed by deposit in the appropriate sections in this release.

"The significant increase in mineral resources at the Minto Mine in a short period of time reflects the mine's tremendous exploration potential," said Stephen Quin, Capstone's President. "Further, with drilling continuing subsequent to the effective date of this estimate, with the notable success of the Wildfire discovery, further increases in confidence levels and potential gains in contained metal can be anticipated as 2010 progresses."

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.

Source: PR Newswire